Loans will also be categorized based on payment period – revolving loans or term loans.

Group of loans

Loans may be broadly categorised as secured or unsecured. Loans which are supported by security or protection by means of assets like home, silver, fixed deposits and PF among others are secured finance. If the bank or NBFC agrees to offer loans without safety and solely according to CIBIL score and individual track documents, it becomes short term loans.

Revolving identifies financing that may be invested, repaid and spent once more. A charge card is a typical example of this. As well as the loans paid down in equal equal payments (EMI) more than a pre-agreed duration are called term loans.

Forms of loans

The most popular kinds of loans that individuals avail are:

Mortgage Loan Car Finance Education Loan Unsecured Loan Company Loan Gold Loan

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